European IPOs run out of steam

European IPOs looked hot. Now they don't. Here's why.

Ludo Lugnani
Ludo Lugnani

In Short: Private equity firms are hitting the brakes on IPOs in Europe due to growing stock market volatility and political uncertainties.

What's Going On?

Just when it seemed Europe’s initial public offerings (IPOs) were picking up steam, a series of events has prompted a sharp pullback. High-profile companies like Golden Goose Group and Tendam have paused their plans to go public. The backdrop? A jittery stock market spooked by French President Macron's surprise call for a snap election, leading to the largest surge in the Euro Stoxx 50 Volatility Index in over a year.

This hesitation by private equity giants, such as Permira and CVC Capital Partners, reflects a broader trend of nervousness about the stability of market conditions. Despite a promising start to the year with about $14 billion raised—a notable increase from last year—the recent shelving of IPOs suggests a shaky confidence in the market's ability to support new listings.

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